Citi (C, Financial) has reported a strong first quarter, surpassing revenue predictions with figures hitting $21.6 billion, outpacing analyst forecasts of $21.29 billion. The firm's net income reached $4.1 billion, underscoring significant advances in operational performance and return metrics across various sectors of the business.
The company posted a Common Equity Tier 1 (CET1) capital ratio of 13.4% for the quarter. Additionally, Citi's tangible book value per share stands at $91.52, while the return on common equity (ROCE) and return on tangible common equity (RoTCE) were 8% and 9.1%, respectively.
Within the quarter, Citi's services division enjoyed its best performance in a decade, and the markets segment saw a revenue increase of 12%, propelled by heightened client activity. The banking segment also reported a 12% rise, largely due to a surge in M&A revenue, which nearly doubled compared to the same period last year. Meanwhile, wealth management revenues witnessed a substantial 24% climb, reflecting growth across all client segments.
Domestically, the U.S. personal banking division saw a 2% increase, primarily driven by the expansion in Branded Cards, also experiencing enhanced returns. Citi returned $2.8 billion to shareholders, which includes $1.75 billion in stock buybacks, forming part of the company's broader $20 billion repurchase strategy.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for Citigroup Inc (C, Financial) is $87.40 with a high estimate of $110.00 and a low estimate of $70.00. The average target implies an upside of 38.25% from the current price of $63.22. More detailed estimate data can be found on the Citigroup Inc (C) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Citigroup Inc's (C, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Citigroup Inc (C, Financial) in one year is $61.58, suggesting a downside of 2.59% from the current price of $63.22. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Citigroup Inc (C) Summary page.
